Sree Vardhana Trust vs Commissioner Of Income-Tax on 11 October, 1996
If the decision of this court in Thanhammal's case [1964] 52 ITR 634 was considered, it would show that therein the assessee executed a gift deed of certain agricultural lands in favour of her minor children assigning separate items of property to each of them as a result of which each child became the full owner of the items allotted to each child. This led this court to hold that the assessee could not be understood to be holding properties gifted to the children for the benefit of the children within the meaning of Section 8(2)(a) of the Act. Ultimately, this court has held that the rate applicable to the agricultural income of each of the minors was the rate applicable to the total income of each minor. The decision was cited on behalf of the Revenue and the Tribunal has accepted and acted upon the said decision. All that we can say is that we are perplexed when it is clear from the headnote itself that this court had held that the assessee did not hold the property within the meaning of Section 8(2)(a) of the Act.